The proposed research will inform decisions on the appropriate role of market competition in the allocation of health care resources and identify steps government might take to enhance market forces when procompetitive strategies are chosen. Research will fall under the following headings: 1. Antitrust. Conventional legal analysis of new judicial decisions and enforcement initiatives will continue. A special effort will be made to aid in the development of enforcement priorities and to delineate boundaries beyond which the law should not go in scrutinizing professional activities. Careful attention will also be paid to how to accommodate other government policies (for example, in health planning and manpower development) that come into conflict with the general procompetitive policy expressed in the antitrust laws. 2. Regulation. The contemplated research will address not only the appropriate coverage and scope of regulatory legislation but also the judgments faced by planner-regulators deciding whether to forego regulation of a specific service in favor of market forces. A part-time economist would be used to assist in detailed market analyses. 3. Competition Studies. Topics important for the viability of a procompetitive strategy but without any direct bearing on antitrust and regulatory issues will be studied. The prospects for stimulating price competition among hospitals and the continuing progress of the HMO movement are possible candidates. The economist member of the research team would have particular responsibilities in this area.